ISLAMABAD: Islamabad Chamber of Small Traders (ICST) on Tuesday said the central bank downplayed massive threats faced by the economy in its latest report. The report is over-optimistic at best and far from the ground realities which is an attempt to throw dust in the eyes of masses, it said.
The SBP has overlooked the recent increase in the international oil prices, depleting forex reserves and pressure on local currency and exports, said Islamabad Chamber of Small Traders, Patron, Shahid Rasheed Butt.
He said that government should not rely on such reports but take steps to improve the deteriorating economic situation without any delay.
The government should keep promises of its manifesto which envisioned making Pakistan a developed economy. He added that the government must change its attitude towards critical exports sectors and stop penalising the sectors paying highest level of taxes.
He said that the critical areas needing immediate reforms include energy, taxation, trade, the central bank, investment scenario, agricultural, tax and exports.
Circular debt has swelled to the all-time high, agriculture covering 20 per cent of the GDP is not paying the due share in taxes while the government is not inclined to collect taxes from this sector, he added.
Butt said that budget deficit continues to climb on the back of unabated imports and investments are drying up while exports are constantly down.
The government has not allowed autonomy to the central bank despite the promise and it has failed to achieve the target of returning loans taken from the SBP.
He noted that the tax system is repressive at best and collectors continue to treat taxpayers as criminals, which is widening the gulf of distrust, unfortunately.
The government has already presented many budgets, it may decide not to initiate any unpopular reforms as it will be focusing more on populist policies to win next elections which would be a disaster for the economy, he warned.
